Seller applied one 6.5 cap to the whole building. Is that how these are actually valued?

Separate the streams. That's how any lender's appraiser will look at it and it's how I'd argue price.

Run it: apartments at $1,400 x 6 x 12 is $100,800 gross. The two suites are $49,200 gross. So retail is about a third of your gross and probably more of your NOI if the net leases actually pass through taxes and insurance. If residential in that submarket trades at 5.75 and small-tenant retail trades at 8, the blended number is nowhere near 6.5, and the seller has effectively priced his retail income like apartments.

Two years of remaining term on the larger suite is the real problem. Value that income for what it is, a stream with a cliff in it. I'd underwrite the rollover explicitly: assume the space goes dark for six months, assume $30 to $50 per square foot of tenant improvements depending on what the next use needs, assume a leasing commission. Put those dollars in year three and see what your return looks like.

Also check what "triple net" means in those two documents rather than on the flyer. On small mixed-use buildings I see a lot of leases described as net that cap the tenant's tax contribution, or that stay silent on roof and structure, which leaves you holding the expensive half. If the pass-throughs are soft, the expense line on that sheet is understated and the NOI is not $104,000.

Two years of term with no renewal option is not income, it's a countdown. Ask whether the retail tenant owns the fixtures and how much it would cost him to move. A restaurant with a hood and a walk-in tends to renew because leaving is expensive. A bookkeeping office with four desks leaves for fifty cents a foot. That difference is worth more than a hundred basis points of cap rate to me and it never appears on the flyer.